SUPPLIER INFORMATION PACK
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SUPPLIER INFORMATION PACK
ALDI SUPPLIER INFORMATION PACK 2 Welcome to Aldi The following document provides a guide for new suppliers about the history of Aldi – how we started, our growth and plans for the future.
Contents Overview 4 Account management 15 Our philosophy 5 Terms & Conditions 17 Our journey so far 6 Administration 21 Who’s who in Aldi? 8 The supply chain 23 Pre-tender. Tender. Launch! 11 Quality & CR 25 Product life-cycle 12 Artwork & packaging 13
ALDI SUPPLIER INFORMATION PACK 4
Overview
Our store model is built on creating efficiencies
at every level – from store construction, to
Every aspect off
distribution, to the specific products we stock.
our operation has
haas
Our success shows we are as much a philosophy
htt
been rethought
as we are a supermarket.
d to
and reinvented t
Every aspect of our operation has than 805 stores in the GB and over quuality
maximise the qualityy
been rethought and reinvented to 134 in Ireland. By focusing on the
tss
of our products
maximise the quality of our products integrity of our business plan and
and savings for our customers. the satisfaction of our customers, orr
and savings for
employees and partners, we’ve our customerss
We began our UK operation in 1990
become the nation’s leading
with our first store in Stechford
discounter and the fifth largest
in the West Midlands. Since then,
supermarket with a 7% share of
we’ve grown into a multi-billion the market.
pound retail business with more
ALDI SUPPLIER INFORMATION PACK 5 Our philosophy Our unique business model enables us to provide the highest quality products at the lowest possible prices. This value stems from the numerous efficiencies and innovations we’ve introduced at every level of our operation. Our stores offer our customers over 1,800 of the most commonly purchased fresh and ambient products, in a smaller, more manageable environment designed with sustainable, long-term savings in mind.
ALDI SUPPLIER INFORMATION PACK 6
Our journey so far
(or a ‘potted history’!)
1914 1954 1962 1967 1990 1999 2017 2022
Anna Albrecht They opened their “Albrecht Discount” More than 200 Aldi Opened our first Opened our first Aldi becomes Aldi to have opened
opened a small first self-service was shortened South locations. store in the UK. store in Ireland. Britain’s fifth biggest its 1,000th store in
food store in store – a first to Aldi. supermarket. the UK by 2022.
Essen, Germany. in Germany.
Newest region in
By 1948, her sons Cardiff opens.
took over the
business and
expanded to
four locations.
ALbrecht + DIscount ALDI
ALDI SUPPLIER INFORMATION PACK 7
Where you’ll
find us… 805+
UK stores
134+ Bathgate
Bathgate
Ireland
stores
Darlington
Darlington
2
Ireland
Bolton
Bolton Goldthorpe
Goldthorpe
10
distribution GB regional
centres Naas
Naas Neston
Neston distribution
centres 1000
Atherstone
Atherstone stores
Mitchelstown
Mitchelstown
Chelmsford
Chelmsford
by 2022
Cardiff
Cardiff
Swindon
Swindon
Sheppey
Sheppey opening
opening mid-2019
mid-2019
ALDI SUPPLIER INFORMATION PACK 8 Who’s who in Aldi?
ALDI SUPPLIER INFORMATION PACK 9
Buying
Our UK Buying Office is based in Our Buying Directors report to a
Atherstone, Warwickshire. We also Group Buying Director who is your
have a separate Scottish Buying “Senior Buyer” under the terms
Our Buying Directors
Office based in Bathgate, whose of The Groceries Supply Code of are supported by
focus is to source locally produced Practice (GSCOP) in the UK. Buying Assistants,
products for selling in our
Before we agree a supply
who will handle your
Scottish stores.
agreement (contract) with yo
you,
u, day-to-day enquiries
In Naas, County Kildare, we have our we will send you our Terms &
Irish Buying Office that concentrates Conditions of Purchase alongng
on buying Irish produced products with all supporting documents.
ment nts.
nt s.
and products that are more suited to This will include the contactt details
deta
de tailss
ta
the Irish market than the UK. of our Trading Departmentsts who
who are
are
responsible for placing day-to-day
y-to
to-d
to-day
-d ay
Each of our Buying Directors are orders and maintaining availability
vaililab
abilililit
ab ityy
it
responsible for a number of product for our stores.
categories. They are supported by
Buying Assistants, who will handle
your day-to-day enquiries.
ALDI SUPPLIER INFORMATION PACK 10 Trading Each of our Regional Distribution Centres has a Trading Department headed up by a Trading Director. Each Trading Director has numerous The Trading and Buying teams Trading Assistants reporting to them work closely together to ensure who are responsible for placing our forecasted volumes are as accurate daily orders with you, confirming as possible and to discuss any delivery times and handling any challenges that may occur. delivery queries you may have.
ALDI SUPPLIER INFORMATION PACK 11
Pre-tender. Tender. Launch!
“The Right Product at the Right Price”
STAGE
NPD & Market
Pre-tender Tender Buy & Deliver Launch
Opportunities
1 New Idea 1 Scope out market/ 1 Create tender and 1 Award business 1 Go live
2 Refresh existing Competitive set issue to supply base 2 Engage design agency 2 Monitor performance
2 Scope out supply base 2 Communicate benchmark and Technical Service
GOAL
3 Quality/Cost improvement 3 Review performance
3 Establish product 3 Tender sample Provider (TSP)
4 Discontinue lines/gap fill
“must haves”
4 Determine benchmark
• Range analysis to • Identify: • Tender sent via Aldi • Supplier confirmed • Fixed date review
highlight issues - the opportunity Tendering Platform • Design and artwork • Review:
• Market data to - the market position • Final product/ process starts: - week 1 sales
highlight trends - commodities position supplier selected - artwork sign off - month 1 sales
- the benchmark - technical sign off
• Full competitor review • Fit for use/ • Provide performance
- the product specification
TASK
to identify gaps benchmark testing • Full product approval update
- merchandising
• Supplier info to - case mix including production • Regional feedback
highlight New Product - design elements samples and technical file
• Customer service feedback
Development/specification • Inspection at source (non-
• Set out goals/objectives
improvements food special buys only)
• Retrieve initial commercials
• Regional communicationALDI SUPPLIER INFORMATION PACK 12
Packaging Service Provider Buying Director
Who’s
Technical Service Provider Buying Assistant
Project Manager involved
Supplier in the QA Department
product
Packaging Specialist life cycle? Technical Service Provider
Advisory Assistant
Designer PhotographerALDI SUPPLIER INFORMATION PACK 13 Artwork & packaging
ALDI SUPPLIER INFORMATION PACK 14
Technical Service Provider What is the Brand/
generates clearance Packaging benchmark?
to supply (CTS)
Final Colour Accurate Design stage 1/2/3Î
Proof (CAP) approved Design, Buying Director approval
1st artwork amendsÎBuying
artwork and Buying Assistant raises
Director, Supplier, Technical
Service Provider approval
packaging – Product Advice Sheet (PAS) –
include all product claims
1st artworkÎBuying the process Service Provider
Director, Supplier, Technical generates critical path
Service Provider approval and sends to supplier
Technical Service Provider Supplier to complete electronic
generates pack copyÎBuying specification (eSpec) including
Director approval all nutritional, Corporate
Responsibility (CR) and
cooking informationALDI SUPPLIER INFORMATION PACK 15 Account management
ALDI SUPPLIER INFORMATION PACK 16
Account management
To assist Aldi in an efficient manner, we appreciate the
following qualities in our supplier Account Managers:
Familiarisation with Taking Responsibility and
Proactive Not Reactive Meeting Deadlines
Aldi Procedures Accountability for Supply Issues
• Who’s Who (responsibilities) • Inform Buying of availability • Sample requests • Ensure availability through
issues in a timely manner proactively monitoring Aldi
• Pre-tender/Tender/ • Pre-tender/Tender
stock holding at platforms
Sampling timescales • New product development
• Design Agency and Technical
• Goods Receiving Guidelines • Provide regular updates on retail Service Provider critical path
activity within the market
• Design Agency and Technical • Regional booking slots
Service Provider process
Product Development (NPD)
Communication to be In-depth Category Knowledge Accessibility During and in line with the Market,
Clear and Concise and Provision of Market Data Outside of Working Hours Understanding Our Business
Strategy
• Provide regular market data • Providing an emergency
contact for out of hours
• Responding to requests
in a timely mannerALDI SUPPLIER INFORMATION PACK 17 Terms & Conditions
ALDI SUPPLIER INFORMATION PACK 18 Terms & Conditions & Ancillary Documents Aldi asks all new suppliers to sign The Terms also incorporate the up to its Standard Terms and Groceries Supply Code of Practice, Conditions for the Purchase of the Irish Regulations and the Bribery Goods and the associated Ancillary Act 2010. In addition to the Terms Documents. These will be sent to and Conditions, you will be asked you by the Buying Department at to review a number of Ancillary the beginning of the new supplier Documents which provide more process. Aldi’s Terms and Conditions detail on the day-to-day policies lay out how Aldi does business with involved in supplying goods to Aldi. its suppliers on the ground.
ALDI SUPPLIER INFORMATION PACK 19 Document Register Program (DRP) Document Register Program (DRP) is used to e-mail all official documentation to suppliers. All of the e-mails you receive will come from the DRP e-mail address: document.register@aldi.co.uk Some examples of documents you can expect to receive from the DRP are: • Terms & Conditions and Ancillary Documents • GSCOP Documents • Aldi’s Quarterly Supplier Bulletin • Christmas and Easter Delivery Windows • Supplier Guidelines for our Corporate Responsibility
ALDI SUPPLIER INFORMATION PACK 20
Groceries Supply The Groceries Supply Code of Practice (GSCOP) came into
force on 4th February 2010. It applies to all retailers with
Code of Practice grocery sales over £1 billion and ensures that retailers
deal with their suppliers fairly and lawfully at all times.
(GSCOP) Aldi takes pride in its compliance with the Code, ranking as the best
performing supermarket for compliance for the fifth year running
in 2018. All Aldi employees who have regular contact with suppliers receive
GSCOP training on a yearly basis and regular meetings are in place between
The Groceries Code Adjudicator (GCA) and Aldi to ensure our continued
compliance with the Code. Aldi sends its GSCOP newsletter to all suppliers
twice a year, explaining any changes to the code as well as updates on Aldi’s
performance in the yearly GCA Survey.ALDI SUPPLIER INFORMATION PACK 21 Administration
ALDI SUPPLIER INFORMATION PACK 22
Electronic Funds
Transfer/BACS Invoicing Orders & Invoicing
Aldi prefers to pay its suppliers As a supplier of Aldi, you can expect We work with our supply base to
electronically. Enclosed in your to be invoiced for all reasonable ensure all orders are provided in a
new supplier pack, you will receive costs, fees and expenses properly timely manner to enable availability.
an invoicing information form incurred in relation to the supply You will receive orders and will
which you will need to complete agreement (contract) and product, be asked to invoice for delivered
and return. Once the setup is this can include product design, products using Electronic Data
complete, your invoices will be packaging design, artwork, product Interchange (EDI). We offer our
paid electronically with the funds testing, etc. suppliers the option to integrate
released on the due date. The funds our EDI solution or, for those
can take up to three working days ALDI’s nominated brand suppliers who trade less frequently,
management team and technical
to clear. to use our Web EDI solution.
service provider will invoice you,
the supplier, directly upon If you have any questions
completion, of design, artwork related to EDI, please contact
and product testing. EDIcoordination@aldi.co.uk.ALDI SUPPLIER INFORMATION PACK 23 The supply chain
ALDI SUPPLIER INFORMATION PACK 24
Availability Deliveries Logistics
At Aldi, availability is paramount. At Aldi, we are continuing to We work with our supply base to
With only 1,800 SKUs in our range, develop our estate as our business ensure that they have an efficient
not having stock on the shelf for grows from strength to strength. and cost-effective delivery solution
even a day can make the difference In the UK, we have eleven RDCs when working with Aldi. Whether
for customers being able to pick up including eCommerce and two in that is using your own logistic
their full shop or not. That can affect Ireland. You will be asked to deliver partners or Aldi’s preferred primary
our customer satisfaction, our sales seven days a week to an agreed network – there is a simple solution
and our reputation. That’s why we Minimum Order Quantities (MOQ) if for all your products, no matter
take availability so seriously. you supply. where they come from in the world.
Regional
Quality Control Communications Questions
Our Regional Quality Control teams Continued engagement and If you have any concerns, queries or
are on hand to ensure that only the communication is at the heart of what need any support with developing
finest produce and highest quality we do. Working with our Corporate the right solution in your supply
products make it to our stores. This is Logistics Team, we can ensure that chain then please ask your Buying
the final check before the products you have the right information when Director to put you in contact with
leave the RDC. starting your journey with Aldi; if our Corporate Logistics Department.
it’s challenges with case mixing to
getting the product to the right port -
they have the expertise you need to
deliver these requests.ALDI SUPPLIER INFORMATION PACK 25 Quality & CR
ALDI SUPPLIER INFORMATION PACK 26
Quality & CR: food
Aldi is committed Ethical Sourcing Certification Requirements
to maintaining the Aldi is committed to human rights and fair labour
for Site Manufacture
highest quality practices throughout our supply chain. We expect
You will be requested to provide the following:
of materials and all suppliers to comply with the Social Standards
in Production contained within Aldi’s Corporate • All sites of manufacture producing Aldi brand food
production processes. Responsibility Principles and to adhere to all products must be certificated to a Global Food Safety
It fully expects that requirements of the Aldi UK and Ireland Social Initiative (GFSI) benchmarked scheme, e.g. British Retail
this commitment is Monitoring Programme (SMP). Consortium (BRC) Global Standard for Food Safety
followed throughout • If your site of manufacture, packing or bottling
Product Specification does not have certification to a GFSI scheme, please
its supply chain. As a inform your Aldi Buying Director immediately
Product specifications are captured in an Electronic
socially responsible Specification (eSpec) system managed by the TSP on • GFSI certification in English
company, it is of critical behalf of Aldi. Product specification information must
• GFSI audit report in English
importance for Aldi to relate to the site of the manufacturer. Information
must be accurate as this will be used to generate pack • Site manufacturing details
know that our products copy & substantiate product claims. • Site packing details
are safe for our (if different to the manufacturing site)
consumers. • Certificate must be within scope and
valid for manufactureALDI SUPPLIER INFORMATION PACK 27
Quality & CR: food
Clearance To Supply (CTS) Aldi Polices Product Testing
The CTS is issued once the TSP is Suppliers must comply with all Aldi has a comprehensive product
satisfied that: relevant Aldi policies. It is the testing due diligence programme.
supplier’s responsibility to make Products are tested for compliance
• The site of manufacture meets sure they familiarise themselves with the agreed specification and
Aldi certification requirements
with our policies and in turn brief legality at first production and whilst
• Legal requirements and Aldi their manufacturing sites. on sale. You must provide product
policies are complied with samples from first production for
• The product is supported by an
Costings testing by the Technical Service
approved specification Provider. You will be notified of any
Costs for approval and due
issues identified during the product
• Artwork is approved. The CTS will diligence will need to be met by testing due diligence programme.
be valid for a defined period you, the supplier.ALDI SUPPLIER INFORMATION PACK 28
Quality & CR: non-food & textiles
Aldi is committed Ethical Sourcing
to maintaining the Aldi is committed to human rights and fair labour
highest quality practices throughout our supply chain. We expect
of materials and all suppliers to comply with the Social Standards
in Production contained within Aldi’s Corporate
production processes. Responsibility Principles and, where relevant,
It fully expects that to adhere to all requirements of the Aldi UK and
this commitment is Ireland Social Monitoring Programme (SMP) and
Detox Commitment.
followed throughout
its supply chain. Supplier Approval
As a socially A Technical Service Provider (TSP) working on
responsible company, behalf of Aldi will contact you, the supplier, and
it is of critical request all relevant information relating to your
product. All suppliers must receive a Clearance
importance for Aldi To Supply (CTS) for each product before supply to
to know that our Aldi starts. New suppliers and/or production sites
products are safe for are subject to an Aldi approval audit.
our consumers.ALDI SUPPLIER INFORMATION PACK 29
Quality & CR: non-food & textiles
Product Specification
• Complete and submit Supplier Questionnaire: Non-Food & Textiles
• TSP receives a Product Advice Sheet (PAS) from Aldi UK. TSP will provide
details of the product approval process and critical path and any applicable
quality manuals
• TSP will contact the supplier and request the following (this may vary
depending on product):
– Product specification - to also substantiate product claims
– Artwork
– Component List (Critical & Internal)
– Risk analysis - Hazard And Risk Management System (HARMS) and
Hazard Analysis and Critical Control Points (HACCP)
– Copy of instructions and user guides
– Warranty/guarantee details
– Physical sample of product
– Factory Quality Management Systems (QMS) / quality controls
– Any existing testing certificates (dated within 1 year of submission)ALDI SUPPLIER INFORMATION PACK 30
Quality & CR: non-food & textiles
Certification Clearance to Supply The CTS will be valid for a defined Costings
period. Where an Final Random
Requirements The TSP will confirm Regulatory Inspection (FRI) is performed and Costs for approval and due
for Site Manufacture Requirements and any non the result is acceptable, the TSP will diligence will need to be met by
conformance in the documentation issue the CTS for you to ship the you, the supplier.
Supplier manufacturing sites must supplied. The CTS is issued once the product.
comply with Aldi technical audit TSP is satisfied that: Product Testing
** Please note the Final Random Inspection (FRI)
requirements for all commodity will be performed at the site of manufacture.
groups for non-food core/hard lines • The site of manufacture meets Aldi Any products submitted may be
and textiles. certification requirements subjected to ongoing performance
Aldi Policies
testing and evaluation.
• Legal requirements and Aldi
Suppliers must comply with the
policies are complied with
relevant Aldi policies. It is the
• The product is supported by supplier’s responsibility to make
an approved specification sure they familiarise themselves
and meets all relevant quality with our policies and in turn brief
performance requirements their manufacturing sites.
• Artwork and instruction manuals
are approvedFor more information, please visit our supplier website at: www.aldi.co.uk/suppliers
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